How to Spot a Crooked Bid: Red Flags Hidden in Contractor Estimates

In Washington State, a contractor can register without proving skill or financial stability. That makes the estimate, and what’s missing from it, your first line of defense. Crooked Contractors of Washington offers these tips on how to read bids like a pro and what state law actually requires before work starts.

The red flags

1) Vague allowances.

An allowance is a placeholder for materials you’ll choose later, say, “$1,000 for bathroom tile.” If the tile you actually want costs $1,800, you’ll get a change order for the extra $800 plus labor. Some bids use unrealistically low allowances to appear competitive. Ask for model numbers or at least a realistic per-square-foot price before signing.

2) TBD materials or specs.

“To be determined” means nothing is nailed down. If your estimate says “flooring TBD” or “brand of windows TBD,” that leaves the contractor free to install the cheapest option that technically fits the description. Every major item should list a brand, model, quantity and price upfront.

3) No labor breakdown.

A single lump-sum number hides everything. For example, “Kitchen remodel – $48,000” tells you nothing about how much covers electrical, plumbing, drywall, or painting. Ask for a simple table showing labor and materials by trade. You’ll spot whether something critical, like drywall finishing, has been low-balled or omitted entirely.

4) Time & Materials with no ceiling.

If the bid says “$90/hour plus materials,” but nowhere limits hours or materials, you’ve given the contractor an open checkbook. Always insist on a “not-to-exceed” cap and a written requirement for daily logs or weekly summaries.

5) Big deposit, thin paperwork.

Be wary of requests like “50 percent down to hold your spot” without a detailed scope or start date. Deposits that exceed the value of materials already ordered are financing the contractor, not your project. Washington law doesn’t cap deposits — something that needs to change — so you have to. Tie payments to milestones such as “after framing inspection passes” and ask for lien releases from subcontractors and suppliers to confirm they’ve been paid; this protects you from paying twice if the general contractor fails to pass along your money.

6) Missing exclusions and assumptions.

A solid bid also lists what’s not included: permits, hauling debris, paint color changes, or hidden damage repairs. If those are missing, you’ll likely see add-on charges later at premium rates. A clean, transparent bid actually protects both parties by setting boundaries.

7) “We’ll figure out permits later.”

The estimate should state who pulls any required permits (almost always the contractor) and when. L&I warns homeowners to avoid contractors who ask you to pull permits in your own name. That’s a common way for unlicensed or uninsured builders to sidestep responsibility.

What Washington actually requires before work

Washington doesn’t require a formal written construction contract for private jobs, but it does require a Model Disclosure Statement (“Notice to Customer”) on most residential projects of $1,000 or more. Contractors must give this disclosure before starting work and keep a signed copy for three years; if they don’t, they can lose lien rights. See RCW 18.27.114 and L&I Form F625-030.

Separately, Washington’s lien law lets owners protect themselves with lien releases and joint checks when paying. The statutory notice explains these rights and how to use them. See RCW 60.04.031.

What you can insist on before you sign

• A real scope of work. Include written specs that define brands, models, installation methods, square footage, and finish standards.
• Transparent pricing. Labor vs. materials, listed subs, realistic allowances, and unit pricing for likely changes.
• Milestone payment schedule and lien protection. Pay only after verifiable milestones; collect conditional lien releases with each invoice and final releases at completion.
• Change-order rules. Every extra must be priced and signed before the work starts.
• Schedule and permits. Start and target completion dates, delay terms if appropriate, and a clause requiring the contractor to pull and close permits.
• Proof of registration, bond, and insurance. Verify all of it on L&I’s “Verify a Contractor” portal; it lists lawsuits against the bond and safety history.

Bottom line: In Washington, the state-mandated disclosure is thin protection, as is the lack of qualifications for becoming a licensed contractor. Your real leverage is a detailed written bid and contract that spell out scope, pricing, schedule, permits, and lien protections. If a bidder resists that clarity, that’s the biggest red flag of all.

Sources: RCW 18.27.114 (Model Disclosure Statement); L&I “Hiring a Contractor” and consumer brochure F625-084-000; L&I Form F625-030 “Disclosure Statement Notice to Customers”; RCW 60.04.031 (owner protections, lien releases, and joint checks); L&I “Verify a Contractor” portal.